Recent Price Movement and Market Performance
On the day of the new low, Afcons Infrastructure’s stock declined by 1.65%, notably underperforming the Sensex which fell by 0.48%. This marks the third consecutive day of losses, with the stock shedding 3.27% over this short span. The trading range remained narrow at ₹3.25, indicating limited volatility despite the downward trend.
The stock’s performance over longer periods paints a challenging picture. Over the past month, it has declined by 8.36%, compared to the Sensex’s modest 2.07% drop. The three-month return is even more pronounced, with a 21.59% fall against the Sensex’s 0.93% decline. Year-to-date, the stock has lost 9.85%, while the Sensex has decreased by 2.40%. The one-year performance is particularly stark, with Afcons Infrastructure down 32.85%, contrasting with the Sensex’s 8.55% gain.
Longer-term returns remain flat, with zero growth over three, five, and ten years, while the Sensex has delivered 36.66%, 68.37%, and 239.75% respectively over the same periods. This underperformance highlights the stock’s inability to keep pace with broader market gains.
Technical Indicators and Moving Averages
Afcons Infrastructure is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish trend. This technical positioning suggests that the stock has not found support at any recent price levels, reinforcing the downward momentum.
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Financial Metrics and Profitability Analysis
Afcons Infrastructure’s financial indicators reveal ongoing pressures. The company’s average EBIT to interest ratio stands at a low 1.45, indicating limited capacity to comfortably service its debt obligations. This metric is a key factor in the stock’s downgrade to a Strong Sell rating, upgraded from Sell on 9 Dec 2025.
Return on Equity (ROE) averages 9.32%, reflecting modest profitability relative to shareholders’ funds. Net sales growth has been minimal, at an annual rate of just 0.10% over the past five years, while operating profit has grown at a slightly better but still moderate 6.84% annually during the same period.
Operating cash flow for the most recent year was negative at ₹-132.20 crores, underscoring cash generation challenges. Quarterly profit before tax excluding other income fell sharply by 50.1% to ₹36.70 crores compared to the previous four-quarter average. Similarly, quarterly profit after tax declined by 21.1% to ₹105.08 crores.
Shareholding and Market Capitalisation Considerations
Promoter shareholding remains significant at 53.5%, but a notable portion of these shares is pledged. High promoter pledge levels can exert additional downward pressure on the stock price, especially in declining markets, as it may lead to forced selling or increased market uncertainty.
The company’s market capitalisation grade is rated 3, reflecting a mid-tier valuation status within its sector. Despite the challenges, the stock’s return on capital employed (ROCE) is 11.2%, and the enterprise value to capital employed ratio stands at an attractive 1.9, suggesting some valuation appeal relative to capital utilisation.
Comparative Sector and Market Performance
Afcons Infrastructure has consistently underperformed the BSE500 index over the last three years, one year, and three months. This persistent lag highlights the stock’s relative weakness within the broader market and its construction sector peers. The sector itself has not been immune to volatility, but Afcons Infrastructure’s returns have been notably subdued.
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Profitability Trends Amidst Declining Share Price
While the stock price has declined sharply, the company’s profits have shown some improvement over the past year, rising by 33%. This divergence between profit growth and share price performance may reflect market concerns over other financial and structural factors, including debt servicing and cash flow generation.
Despite this profit increase, the overall financial health indicators and market performance metrics have not translated into positive momentum for the stock price, which remains at historic lows.
Summary of Key Metrics
To summarise, Afcons Infrastructure Ltd’s stock has reached an all-time low of ₹349.5, reflecting a sustained downtrend across multiple time frames. The company’s financial ratios, including a low EBIT to interest coverage and modest ROE, alongside negative operating cash flow and significant promoter share pledging, contribute to the stock’s Strong Sell rating with a Mojo Score of 28.0.
The stock’s underperformance relative to the Sensex and BSE500 index over one, three, and five years further emphasises the challenges faced. While valuation metrics such as ROCE and enterprise value to capital employed suggest some underlying value, these have not been sufficient to arrest the decline in share price.
Afcons Infrastructure’s current market position and financial profile underscore the severity of the situation as reflected in its all-time low share price.
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